USD/JPY Consolidates Near Seven-Month Low Ahead of US Inflation Figures
The USD/JPY pair is consolidating near its seven-month low as traders await US inflation figures. Spot prices are currently trading above 153.50, nearly unchanged for the day, but a more hawkish Bank of Japan (BoJ) repricing continues to support the Japanese Yen (JPY), capping the currency pair.
The technical setup suggests that the path of least resistance is to the downside, with the recent breakdown below the 155.30-155.20 support acting as a key trigger for bearish traders. The USD/JPY pair is now lodged beneath the 38.2% Fibonacci retracement at 154.87 and maintains a bearish near-term bias.
The Relative Strength Index (RSI) around 26 signals oversold conditions, but momentum indicators hint that downside pressure persists even as the risk of a corrective bounce increases. On the topside, initial resistance is seen at the 38.2% retracement at 154.87, followed by the 23.6% level at 158.39 and the 100-day Simple Moving Average (SMA) near 159.73.